Correlation Between CRYOLIFE and ASTELLAS PHARMA

Can any of the company-specific risk be diversified away by investing in both CRYOLIFE and ASTELLAS PHARMA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CRYOLIFE and ASTELLAS PHARMA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CRYOLIFE and ASTELLAS PHARMA UNSPADR, you can compare the effects of market volatilities on CRYOLIFE and ASTELLAS PHARMA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CRYOLIFE with a short position of ASTELLAS PHARMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRYOLIFE and ASTELLAS PHARMA.

Diversification Opportunities for CRYOLIFE and ASTELLAS PHARMA

-0.75

Correlation Coefficient

CRYOLIFE  ASTELLAS PHARMA

Pay attention - limited upside

The 3 months correlation between CRYOLIFE and ASTELLAS is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding CRYOLIFE and ASTELLAS PHARMA UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTELLAS PHARMA UNSPADR and CRYOLIFE is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CRYOLIFE are associated (or correlated) with ASTELLAS PHARMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTELLAS PHARMA UNSPADR has no effect on the direction of CRYOLIFE i.e., CRYOLIFE and ASTELLAS PHARMA go up and down completely randomly.

Pair Corralation between CRYOLIFE and ASTELLAS PHARMA

Assuming the 90 days trading horizon CRYOLIFE is expected to generate 1.01 times more return on investment than ASTELLAS PHARMA. However, CRYOLIFE is 1.01 times more volatile than ASTELLAS PHARMA UNSPADR. It trades about 0.19 of its potential returns per unit of risk. ASTELLAS PHARMA UNSPADR is currently generating about -0.09 per unit of risk. If you would invest  2,315  in CRYOLIFE on September 5, 2024 and sell it today you would earn a total of  490.00  from holding CRYOLIFE or generate 21.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CRYOLIFE  vs.  ASTELLAS PHARMA UNSPADR

CRYOLIFE

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CRYOLIFE are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, CRYOLIFE exhibited solid returns over the last few months and may actually be approaching a breakup point.

ASTELLAS PHARMA UNSPADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASTELLAS PHARMA UNSPADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with CRYOLIFE and ASTELLAS PHARMA

The main advantage of trading using opposite CRYOLIFE and ASTELLAS PHARMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRYOLIFE position performs unexpectedly, ASTELLAS PHARMA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ASTELLAS PHARMA will offset losses from the drop in ASTELLAS PHARMA's long position.

The idea behind CRYOLIFE and ASTELLAS PHARMA UNSPADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.